How to Protect Yourself from Risky Realty Investment

Bangalore: Investment in real estate has become a profitable investment option. However, investing in property is not just a normal transaction and involves many risks including lack of transparency and tight regulations.

"In any property transaction, you cannot be 100 percent sure. There is only a certain level of satisfaction that can be achieved," said Manish Aggarwal, Executive Director, investment services, Cushman & Wakefield India.

So, to reduce risk, below are a few points to follow, reports Pritam P Hans of Business Today.

Foul business:

The real estate industry has no such restriction for developers, which is why you need to verify developer’s credentials to avoid risk in future.  When investing in property, is it necessary to check the background details of the developers to avoid risk. Although all new developers may not fall on the list of dubious developers yet, many home buyers get trapped to dishonest investment deals.

During the sluggish economic condition, several real estate companies have gone missing, leaving behind the investors only with the purchase agreement. It is better not to believe developers completely. There are developers who set their projects under low costs and give out properties in cheap deals but in such situation, it is mandatory to check their past work details, without believing them completely. 

"The best way to protect yourself from fraudulent developers is to examine their past projects. This usually reveals the developer's true colours," said Samarjit Singh, Managing Director, IndiaHomes, a real estate brokerage.